Tax Hike

As readers of The Sun for over 40 years, we have never read a letter to the editor composed with such animosity than the recent letter from William Smith ("Gas tax brings out whiners," Oct. 19). Being high net worth individuals, we can easily afford another $3 to fill our gas tanks if, in his complete stupidity, Gov. Martin O'Malley gets away with adding 15 cents to the existing 23.5 cents per gallon we pay. After all, it's only a mere 63.8 percent increase. If we remember correctly, Mr. O'Malley ran on a no tax increase platform.

A recent headline announced that "Higher gas tax gets big-county backing" (Oct. 19), but I'm not sure I understand why. Leaders from Maryland's two largest counties and Baltimore City asked lawmakers Tuesday to raise the state's gas tax as a way to fund road projects and create jobs. Yet I wonder how many road projects and jobs could have been created if $650 million hadn't been "borrowed" from the state's Transportation Trust Fund since Governor O'Malley took office? Or the nearly $1 billion diverted since 2003?

Years ago, politicians in Annapolis instituted a gasoline tax and dedicated the proceeds to transportation and roads infrastructure. There were even safeguards in place to ensure that the money was spent only for such projects. But over the years the politicians flouted their own laws and the transportation fund was raided to balance the budget. The transportation system and roads suffered as a result. Now the politicians in Annapolis are proposing a significant raise in the gas tax - and once again it's with the sole stated purpose of using the money for transportation infrastructure.

I find it absolutely incredible that any politician in a sound state of mind would consider implementing new taxes and/or raising existing taxes. The governor of this state hinted last week that additional taxes would be considered in 2012 ("O'Malley puts tax increases on the table for 2012 legislature," Aug. 20). With unemployment hovering around 10 percent and much higher in urban areas, record high food prices, high gasoline prices, high electric rates, and high natural gas and fuel oil prices, most families and small businesses are just making ends meet.

Howard County residents would see no property tax rate increase and employees would get no cost-of-living pay raises, but would not suffer a third year of unpaid furloughs, in County Executive Ken Ulman's $1.56 billion budget proposal for the fiscal year starting July 1. General fund spending, which represents county government-generated revenue, would increase 5.6 percent, reversing last year's 3.2 percent decline. More than half of the new spending is driven by costs over which the county has little control, such as higher fuel and utility costs, health insurance and debt interest.

Anne Arundel County Executive John R. Leopold unveiled Friday his proposed budget for the next fiscal year at a time of slumping revenue and rising costs, calling for the first layoffs in nearly 20 years, 12 employee furlough days, a property tax increase and higher school spending to abide by state law. The $1.2 billion budget for county and school operations would boost spending 1.5 percent while closing a nearly $80 million gap between expenses...

With all the talk about a 10-cent gas tax increase, one has to wonder what would happen if Maryland went ahead and increased the gas tax by $2 a gallon. Does anyone think that a gas tax revenue that is supposed to go into the Transportation Trust Fund won't be used, once again, to balance the general fund budget? By the way, why is the word, "trust," still in the fund's name? If there is any money left over from balancing the budget, perhaps the state could give businesses that consume a lot of gasoline and others hurt by the tax hike a substantial infusion of money to keep them afloat — like the racetracks are begging for. David Gosey, Towson

I just heard on the news this morning that Maryland netted over $10 million in the month of January and $12 million in February from the opening of its two slots parlors. I know part of that money is for education, but why can't Gov. Martin O'Malley and those other big shots in Annapolis take some of that money to put into the Transportation Trust Fund that they raided to balance their budgets? Once you increase the gas tax another 10 cents, there's no going back. With the money from these two slots and the temporary one in Arundel Mills opening at the end of this year, there should be enough money to put into the transportation fund instead of raising the gas tax. Kay Shultz

The alcohol tax increase may be good politics, as Vincent DeMarco says in his letter ("Dime-a-drink alcohol tax increase is good policy and good politics", March 8), but no one should be fooled into thinking it's good policy. During the senate hearing on this tax hike that Mr. DeMarco's letter references, most of the testimony focused on the supposed benefits this tax hike would provide to people with disabilities. What the tax supporters failed to note is the legislation earmarks only 15 percent of the money to help people with developmental disabilities.

This year's General Assembly session is well under way in Annapolis, and once again we face a new threat to hospitality jobs throughout our state. Recently, legislation was introduced that would raise alcohol taxes by more than 790 percent. Supporters say it is just a "dime a drink," but a tax on alcohol is more than a tax on just one drink: It's a direct attack on the hospitality industry, and — according to an economic impact analysis of the industry developed for our company by John Dunham and Associates — it could cost more than 8,000 jobs.